Cliff Behind Timing of Fortress Co-Founder’s Departure

The timing of Fortress Investment Group’s Robert Kauffman’s retirement from the private-equity firm he helped start was partly influenced by his concerns over potentially rising tax rates.

Associated Press

Robert Kauffman, left, with Nascar driver and co-owner of team, Michael Waltrip

Mr. Kauffman, whose retirement as a principal and director is effective immediately, reached a deal with the firm to sell it back $180 million in stock, Fortress announced Monday. Fortress will be able to repurchase 10% of its outstanding shares at $3.50 each, a 15% discount to the market.

Shares rose slightly 1.7% to $4.20 Monday.

Mr. Kauffman said in an interview that the decision came together quickly – the first conversation about his potentially leaving was held only a week before it was publicly announced. He said there was a “confluence of factors” including that he had recently stepped back from running some operations and that the firm had been looking for a way to repurchase what it saw as undervalued shares.